Services, so please focus on that industry.
What Is a Positioning Map?
A positioning map is a visual representation of how a product or service is perceived in the market relative to its competitors. It is a tool used by businesses to understand their competitive landscape and to identify opportunities for differentiation.
Definition and Purpose
The purpose of a positioning map is to help businesses determine where they stand in relation to their competitors in terms of key attributes such as price, quality, features, and customer service. By analyzing these attributes, businesses can identify areas where they may be able to differentiate themselves from their competitors and develop a unique value proposition that resonates with customers.
A positioning map typically consists of a two-dimensional graph in which each axis represents a key attribute. The position of each competitor on the map is determined by their performance on these attributes. By analyzing the map, businesses can identify gaps in the market that they can exploit to differentiate themselves from their competitors.
How to Create a Positioning Map
To create a positioning map, businesses must first identify the key attributes that are most important to their customers. They can then survey customers or conduct market research to determine how their product or service compares to competitors on these attributes.
Once the data has been collected, it can be plotted on a two-dimensional graph. Each axis represents a key attribute, and the position of each competitor on the map is determined by their performance on these attributes. The position of the business on the map can then be determined by plotting its performance on these attributes.
Benefits for Financial Services
For financial services businesses, a positioning map can be particularly useful for identifying opportunities for differentiation in a crowded market. By analyzing the map, businesses can identify areas where they may be able to offer unique value to their customers, such as lower fees, better customer service, or more personalized financial advice.
A positioning map can also help financial services businesses identify gaps in the market that they can exploit. For example, if all of the competitors on the map are clustered in one area, there may be an opportunity to differentiate by offering a product or service that fills a gap in the market.
Examples in the Financial Industry
An example of a positioning map in the financial industry might be a graph with one axis representing fees and the other representing customer service. On this map, a low-fee, high-customer-service business might be positioned in the upper-right corner, while a high-fee, low-customer-service business might be positioned in the lower-left corner.
Other key attributes that might be represented on a positioning map for financial services businesses include interest rates, investment options, and mobile banking capabilities. By analyzing the map, businesses can identify areas where they may be able to differentiate themselves from their competitors and develop a unique value proposition that resonates with customers.
Conclusion and Best Practices
In conclusion, a positioning map is a powerful tool for businesses in the financial services industry. By analyzing the competitive landscape and identifying opportunities for differentiation, businesses can develop a unique value proposition that resonates with customers.
When creating a positioning map, it is important to identify the key attributes that are most important to customers and to collect accurate data on how the business and its competitors perform on these attributes. The map should be regularly updated to reflect changes in the market and to ensure that the business remains competitive.
Finally, it is important to remember that a positioning map is just one tool in a business’s overall marketing strategy. While it can be a valuable tool for identifying opportunities for differentiation, it should be used in conjunction with other marketing tools such as branding, advertising, and social media.
By using a positioning map in conjunction with other marketing tools, businesses can develop a comprehensive marketing strategy that helps them stand out in a crowded market and attract and retain customers.
